agilon health Announces Sale of MDX Hawaii

Rhea-AI Summary

agilon health has announced the sale of its subsidiary, MDX Hawaii, to a private buyer. This will allow agilon to focus on its core partner markets and its full-risk partnership model. MDX Hawaii is a provider network supporting 600 physicians and providing care to approximately 36,000 members covered by two Medicare Advantage health plans. The financial terms of the sale were not disclosed.

Positive

• The sale of MDX Hawaii will enable agilon health to concentrate on its core partner markets and its full-risk partnership model.
• MDX Hawaii is a provider network supporting 600 physicians and providing care to approximately 36,000 members covered by two Medicare Advantage health plans.
• agilon health currently has 31 physician partners.

Negative

• None.

Sale of MDX Hawaii enables agilon to focus on its full-risk partnership model in core partner markets

AUSTIN, Texas--(BUSINESS WIRE)-- agilon health (NYSE: AGL), the trusted partner empowering physicians to transform health care in our communities, today announced that it has sold MDX Hawaii, a wholly owned subsidiary, and its related operations to a private buyer.

“This transaction will allow us to concentrate our efforts on our core partner markets, leveraging our proven, full-risk partnership model that enables physician groups to be accountable for the total cost and quality of care for their senior patients,” said Steve Sell, chief executive officer, agilon health. “MDX Hawaii will benefit from a new owner that is better positioned to invest in and advance its specific fully-delegated business model while continuing to support its focus on improving patient care. We are thankful to the entire MDX Hawaii team for their contributions to agilon health over the past seven years.”

Acquired by agilon in 2016, MDX Hawaii is a provider network supporting approximately 600 physicians with fully-delegated risk contracts and management services organization capabilities, including claims processing and utilization management. MDX Hawaii’s physician network provides care to approximately 36,000 members covered by two Medicare Advantage health plans on the islands of Oahu, Maui, and Kauai.

Management believes the sale of MDX Hawaii will allow agilon to focus on the company’s core partner markets in the continental United States. In these markets, agilon leverages a common operating structure centered around long-term, joint venture partnerships with physician groups and health systems, and non-delegated, full-risk contracts across multiple health plans in a geography. Select agilon physician partners also participate in the ACO REACH program. Currently agilon has 31 physician partners.

The sale of MDX Hawaii and its related operations closed on Tuesday, October 31. Financial terms are not being disclosed. Additional information regarding the transaction will be discussed during agilon’s third quarter earnings call on November 2, 2023.

About agilon health

agilon health is the trusted partner empowering physicians to transform health care in our communities. Through our partnerships and purpose-built platform, agilon is accelerating at scale how physician groups transition to a value-based Total Care Model for senior patients. agilon provides the technology, people, capital, process, and access to a peer network of 2,700+ PCPs that allow physician groups to maintain their independence and focus on the total health of their most vulnerable patients. Together, agilon and its physician partners are creating the healthcare system we need – one built on the value of care, not the volume of fees. The result: healthier communities and empowered doctors. agilon is the trusted partner in 30 diverse communities and is here to help more of our nation's leading physician groups and health systems have a sustained, thriving future. For more information about agilon health, visit www.agilonhealth.com and connect with us on X (formerly known as Twitter), Instagram, LinkedIn, and YouTube.

Forward Looking Statements

Statements in this release that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among other things, statements regarding our and our officers’ intent, belief or expectation as identified by the use of words such as “may,” “will,” “project,” “expect,” “believe,” “intend,” “anticipate,” “seek,” "target," “forecast,” “plan,” “potential,” “estimate,” “could,” “would,” “should,” and other comparable and derivative terms or the negatives of such words. Examples of forward-looking statements include, among other things, statements regarding completion of the sale transaction, timing of the closing of the transaction, obtaining or the timing of obtaining any required approvals or any other consents associated with the transaction, the realization of expected benefits of the transaction and other details relating to the transaction. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: the risk that the completion and expected benefits of the transaction may not be fully achieved in a timely manner, or at all, and risks related to other factors discussed under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022. Except as required by law, we do not undertake, and hereby disclaim, any obligation to update any forward-looking statements, which speak only as of the date on which they are made.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231101002323/en/

Investor Contact

Matthew Gillmor

Vice President, Investor Relations

investors@agilonhealth.com

Media Contact

David Tauchen

Senior Director, Communications

media@agilonhealth.com

Source: agilon health

FAQ

What did agilon health announce?

agilon health announced the sale of its subsidiary, MDX Hawaii, to a private buyer.

What will the sale of MDX Hawaii allow agilon health to do?

The sale of MDX Hawaii will allow agilon health to focus on its core partner markets and its full-risk partnership model.

How many physicians does MDX Hawaii support?

MDX Hawaii supports approximately 600 physicians.

How many members are covered by the Medicare Advantage health plans supported by MDX Hawaii?

Approximately 36,000 members are covered by the Medicare Advantage health plans supported by MDX Hawaii.

How many physician partners does agilon health currently have?

agilon health currently has 31 physician partners.